International Business Competing in the Global Marketplace Global Edition by Charles Hill 10th Edition Test Bank

International Business Competing in the Global Marketplace Global Edition by Charles Hill 10th Edition Test Bank

Chapter 09
Regional Economic Integration

True / False Questions

1. Regional economic integration involves agreements among countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other.

True False

2. The movement toward regional economic integration been most successful in Asia.

True False

3. In a customs union, trade barriers are eliminated among member countries, and each country maintains its own external trade polices with nonmember countries.

True False

4. A common market has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.

True False

5. A common market entails even closer economic integration and cooperation than an economic union.

True False

6. The European Union is an example of a perfect economic union.

True False

7. Coordination and policy harmonization problems are largely a function of the number of countries that seek agreement.

True False

8. Linking neighboring countries economically and making them interdependent creates incentives to increase political cooperation as well.

True False

9. Because of the fact that everyone benefits from economic integration, it is easy to achieve and sustain.

True False

10. A major impediment to economic integration is the loss of sovereignty it entails.

True False